Govt moves to monetise surplus PSU land, buildings worth over ₹1,100 crore

An inter-ministerial group has recommended proposals to monetise surplus land and building assets of state-run companies worth more than ₹1,100 crore for approval by a government panel, the finance ministry said on Thursday.

The proposals relate primarily to surplus land and building assets of Central Public Sector Enterprises (CPSEs) identified for monetisation, the ministry said in a statement.

The IMG, chaired by Secretary, Department of Public Enterprises (DPE), and co-chaired by Secretary, Department of Telecommunications (DoT), reviewed the proposals before recommending them to the Alternative Mechanism (AM).

The proposals will be considered by the Alternative Mechanism, after which the monetisation process can proceed subject to the required approvals.

“The recommendations mark an important milestone in the Government of India's efforts to unlock value from surplus and underutilised public assets and facilitate their productive utilisation,” the ministry said.

The IMG also reviewed the progress of asset monetisation initiatives facilitated by the National Land Monetisation Corporation (NLMC), which is tasked with unlocking the value of surplus land and other non-core assets of CPSEs and government entities.

The NLMC, a wholly owned government company, is responsible for facilitating the monetisation of surplus land and other non-core assets held by central public sector enterprises and government entities.

It assists in assessing assets, conducting due diligence, valuation, structuring transactions and facilitating the monetisation process in coordination with concerned ministries, departments and asset-owning entities.

The government has been pursuing asset monetisation to unlock the economic value of surplus and underutilised public assets and facilitate their productive use.

NLMC is under the administrative control of the Department of Public Enterprises, Ministry of Finance. It was established following the announcement in the Union Budget 2021-22 to facilitate monetisation of surplus land and other non-core assets of CPSEs and government entities.